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PRECIOUS-Gold prices steady as economic growth woes dent risk sentiment

Published 04/09/2019, 02:36
Updated 04/09/2019, 02:40
© Reuters.  PRECIOUS-Gold prices steady as economic growth woes dent risk sentiment
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Sept 4 (Reuters) - Gold prices held steady near a one-week

high on Wednesday, supported by weak U.S. manufacturing data

that heightened fears of an economic slowdown and soured risk

sentiment.

FUNDAMENTALS

* Spot gold XAU= was up 0.1% at $1,548.31 per ounce at

0121 GMT, having touched a one-week high of $1,549.80 earlier in

the session.

* U.S. gold futures GCv1 were steady at $1,555.6 an ounce.

* Spot silver XAG= climbed 1.5% to $19.51 per ounce, after

hitting $19.57, its highest level since September 2016.

* The dollar index .DXY was down 0.1% against a basket of

currencies, while Asian stocks dipped on global recession fears.

USD/ MKTS/GLOB

* U.S. President Donald Trump on Tuesday warned he would be

"tougher" on Beijing in a second term if trade talks dragged on,

compounding market fears that ongoing trade disputes between the

United States and China could trigger a U.S. recession.

* U.S. manufacturing activity contracted for the first time

in three years in August, with new orders and hiring declining

sharply as trade tensions weighed on business confidence,

raising financial market fears of a recession. * U.S. Treasury yields fell on Tuesday, with the benchmark

10-year yield hitting its lowest since July 2016. US/

* The U.S. Federal Reserve should cut interest rates by half

a percentage point at its meeting in two weeks to get ahead of

both financial market expectations for a rate cut and a global

trade war that has become a broader "reckoning" over how the

world economy is organised, St. Louis Federal Reserve President

James Bullard said in an interview on Tuesday. * ECB policymakers are leaning towards a stimulus package

that includes a rate cut, a beefed-up pledge to keep rates low

for longer and compensation for banks over the side-effects of

negative rates, five sources familiar with the discussion said.

* British lawmakers defeated Boris Johnson in parliament on

Tuesday in a bid to prevent him taking Britain out of the EU

without a divorce agreement, prompting the prime minister to

announce that he would immediately push for a snap election.

* SPDR Gold Trust (P:GLD) GLD , the world's largest gold-backed

exchange-traded fund, said its holdings rose 1.34% to 890.04

tonnes on Tuesday from 878.31 tonnes on Friday. * Gold reserves held by Venezuela's central bank fell by $1

billion in the first half of 2019, official data released this

week showed, amid opposition accusations that the government is

selling the precious metal abroad to raise revenue in the face

of U.S. sanctions.

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